Strategy sees sharp move in global ETF

A trader is apparently combining stock and options to position for a big move higher or lower in the global iShares EAFE Index Fund.

optionMONSTER systems show that more than 21,000 April 64 calls traded with zero open interest at that strike. The largest print of 13,852 was purchased for the ask price of $0.07.

A minute after the calls were bought, a block of 145,978 EFA shares was sold for $58.31. This suggests that the overall trade may be a delta-neutral trade that is looking for higher volatility and large moves in the stock, rather than a particular direction. (See our Education section)

The EFA is down fractionally at $58.49. The exchange-traded fund, which tracks indexes in Europe, Asia, and Australia, has been holding above $58 for the two weeks after hitting a 52-week high of $59.59 on the first day of this month.